# Your company, located in the Middle East, is currently engaged in the garment business and is considering expanding into the African subcontinent by setting up a new line of business of soft toys. As a strategy consultant, you are responsible for advising the company on the advantages of such an action (e.g. greenfield projects as diversifications that are unrelated to the business). The data provided in your study should be supported by theoretical underpinnings regarding diversification through Greenfield projects in the current economic environment. It is assumed that the figures presented above for 2015 will remain true in 2024. (Note: Theoretical underpinnings related to diversification must be a part of your answer) (Note 1: Businesses are said to be unrelated when their value chains are so dissimilar that no competitively valuable cross- business relationships exist. Note: 2 You must bring in contexts of FDI funding in other African countries vis-à-vis South Africa and challenges/benefits thereof Note 3: Your answer must be supported by additional research) Question 3. Please study the diagram below and answer the question that follow: Announced Greenfields FDI into Africa -2015 North Africa 31% West Africa 27% Southern Africa 20% East Africa 15% Central Africa 7% Source: World Investment Report, 2016 and KPMG calculations (18 Marks) Link to the Report: http://mypage.netlive.ch/demandit/files/M_A3551CC4DCE82FCF285/dms/File/Foreign%20Direct%20Investment%20D ocument%20FINAL(1).pdf Accessed 24th March 2024. Note: These are Greenfield Projects. An excerpt from a KPMG report containing historical data (up to 2015) illustrates the flow of foreign direct investment into African countries)
# Your company, located in the Middle East, is currently engaged in the garment business and is considering expanding into the African subcontinent by setting up a new line of business of soft toys. As a strategy consultant, you are responsible for advising the company on the advantages of such an action (e.g. greenfield projects as diversifications that are unrelated to the business). The data provided in your study should be supported by theoretical underpinnings regarding diversification through Greenfield projects in the current economic environment. It is assumed that the figures presented above for 2015 will remain true in 2024. (Note: Theoretical underpinnings related to diversification must be a part of your answer) (Note 1: Businesses are said to be unrelated when their value chains are so dissimilar that no competitively valuable cross- business relationships exist. Note: 2 You must bring in contexts of FDI funding in other African countries vis-à-vis South Africa and challenges/benefits thereof Note 3: Your answer must be supported by additional research) Question 3. Please study the diagram below and answer the question that follow: Announced Greenfields FDI into Africa -2015 North Africa 31% West Africa 27% Southern Africa 20% East Africa 15% Central Africa 7% Source: World Investment Report, 2016 and KPMG calculations (18 Marks) Link to the Report: http://mypage.netlive.ch/demandit/files/M_A3551CC4DCE82FCF285/dms/File/Foreign%20Direct%20Investment%20D ocument%20FINAL(1).pdf Accessed 24th March 2024. Note: These are Greenfield Projects. An excerpt from a KPMG report containing historical data (up to 2015) illustrates the flow of foreign direct investment into African countries)
Contemporary Marketing
18th Edition
ISBN:9780357033777
Author:Louis E. Boone, David L. Kurtz
Publisher:Louis E. Boone, David L. Kurtz
Chapter8: Global Marketing
Section8.6: Determining A Market Entry Strategy
Problem 1LO
Related questions
Question
Transcribed Image Text:# Your company, located in the Middle East, is currently engaged in the garment business and is
considering expanding into the African subcontinent by setting up a new line of business of soft
toys. As a strategy consultant, you are responsible for advising the company on the advantages
of such an action (e.g. greenfield projects as diversifications that are unrelated to the business).
The data provided in your study should be supported by theoretical underpinnings regarding
diversification through Greenfield projects in the current economic environment.
It is assumed that the figures presented above for 2015 will remain true in 2024.
(Note: Theoretical underpinnings related to diversification must be a part of your answer)
(Note 1: Businesses are said to be unrelated when their value chains are so dissimilar that no
competitively valuable cross- business relationships exist.
Note: 2 You must bring in contexts of FDI funding in other African countries vis-à-vis South Africa and
challenges/benefits thereof
Note 3: Your answer must be supported by
additional research)
Transcribed Image Text:Question 3.
Please study the diagram below and answer the question that follow:
Announced Greenfields FDI into Africa -2015
North Africa
31%
West Africa
27%
Southern Africa
20%
East Africa
15%
Central Africa
7%
Source: World Investment Report, 2016 and KPMG calculations
(18 Marks)
Link to the Report:
http://mypage.netlive.ch/demandit/files/M_A3551CC4DCE82FCF285/dms/File/Foreign%20Direct%20Investment%20D
ocument%20FINAL(1).pdf Accessed 24th March 2024.
Note: These are Greenfield Projects.
An excerpt from a KPMG report containing historical data (up to 2015) illustrates the flow of foreign direct
investment into African countries)
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